What is the maximum EEOC settlement?

Asked by: Oral Beer  |  Last update: August 21, 2025
Score: 4.7/5 (3 votes)

There are limits on the amount of compensatory and punitive damages a person can recover. These limits vary depending on the size of the employer: For employers with 15-100 employees, the limit is $50,000. For employers with 101-200 employees, the limit is $100,000.

What is the average EEOC settlement amount?

The average settlement for employment discrimination claims is about $40,000, according to the EEOC. While many cases settle out of court, some proceed to trial, making settlement amounts variable.

What is the highest paid discrimination lawsuit?

Sanford Heisler Sharp McKnight achieved the largest jury verdict in U.S. history in an employment discrimination case. A jury awarded $253 million after finding the pharmaceutical giant liable for gender discrimination in pay, promotions, and relating to pregnancy.

What are the odds of winning the EEOC case?

Q: What Are the Chances of Winning an EEOC Case? A: The EEOC has a very high success rate when it comes to court decisions, reaching favorable outcomes in nearly 96% of all district court cases stemming from EEOC complaints.

What do EEOC settlements look like?

Settlements of EEO disputes may contain monetary payments that are independent of any personnel action, provided that the monetary payment does not exceed the amount of back pay, attorney's fees, costs, or damages the employee would have been entitled to in the case if discrimination had been actually found.

Is my workplace discrimination case worth more than $40k or $50k? Should I settle?

41 related questions found

What is the average EEOC award?

According to the Equal Employment Opportunity Commission (EEOC), the average settlement for employment discrimination claims is about $40,000. However, depending on the facts and circumstances of the case, settlements or verdicts can climb to seven figures.

How much should I ask for in a discrimination settlement?

Average Disability Discrimination Settlements in California

The average settlement for a disability discrimination case can range from around $25,000 to $500,000. Less complex cases often settle for about $100,000 or less, while more involved cases can exceed $1,000,000.

What makes a strong EEOC case?

The EEOC bases its investigations on the facts presented by the employee. Without strong evidence, even legitimate claims may be dismissed. A compelling case demonstrates the actions taken against you, provides context, and establishes a clear connection to discrimination or retaliation.

What is the EEOC settlement limit?

For employers with 15-100 employees, the limit is $50,000. For employers with 101-200 employees, the limit is $100,000. For employers with 201-500 employees, the limit is $200,000. For employers with more than 500 employees, the limit is $300,000.

Does the EEOC get you money?

If the EEOC finds discrimination, we will work with your employer to fix the situation. You could receive money damages as part of that process. We also can seek promotions, reinstatement, and other workplace changes for you.

Does a discrimination settlement count as income?

IRC Section 61 explains that all amounts from any source are included in gross income unless a specific exception exists. For damages, the two most common exceptions are amounts paid for certain discrimination claims and amounts paid on account of physical injury.

What lawsuit pays the most?

The Biggest Lawsuit Ever: The Tobacco Settlement — $206 Billion. The Tobacco Master Settlement Agreement was filed in 1998 against the four largest tobacco companies in the United States and remains the largest lawsuit in history in terms of dollars involved. Defendants included Philip Morris, R. J.

What happens if EEOC finds employer guilty?

When conciliation does not succeed in resolving the charge, the EEOC has the authority to enforce violations of its statutes by filing a lawsuit in federal court. If the EEOC decides not to litigate, the charging party will receive a Notice of Right to Sue and may file a lawsuit in federal court within 90 days.

Does EEOC negotiate settlements?

An Equal Employment Opportunity Commission (EEOC) administrative judge may suspend a hearing to allow the parties to settle a case and will accept a settlement to resolve the case at any time before a final decision is reached. The sooner a settlement is reached the better.

How to calculate a discrimination settlement?

There is no magic formula to figure out what your case is worth. And while every case is different, some factors come up in most cases. The amount of the employee's economic loss is always important to consider. The seriousness and severity of the employer's or harasser's conduct is always important as well.

What is the highest EEOC settlement?

10 of the biggest EEOC settlements ever
  • $176million, Nextel, June 2000. ...
  • $175million, Novartis, July 2010. ...
  • $172million, Texaco, November 1996. ...
  • $132.5million, Shoney's, June 2005. ...
  • $81.5million, Publix Super Markets, June 1995. ...
  • $80million, Sodexho Marriott Services, August 2005. ...
  • $54million, Morgan Stanley, September 2001.

What can I ask for in an EEOC settlement?

Here are a few things you can ask for in a settlement:
  • Punitive Damages. If an employer deliberately and maliciously discriminates, you may be able to seek punitive damages on top of other compensation. ...
  • Economic Damages. ...
  • Non-Economic Compensatory Damages. ...
  • Attorney's Fees.

Do you have to pay taxes on EEOC settlements?

The two methods for reporting payments made as part of a settlement are a Form W-2 for employment related payments and a Form 1099-MISC for any damages. The IRS requires that federal income taxes must be withheld and a W-2 issued regardless of whether the plaintiff is still an employee at the time of the settlement.

What is the maximum damages for EEOC?

The Americans with Disabilities Act (ADA) and Title VII of the Civil Rights Act of 1964 caps the combined amount of compensatory and punitive damages an individual may be awarded. Those caps are: $50,000 for employers with 15 to 100 employees. $100,000 for employers with 101 to 200 employees.

What words scare human resources?

Words like "harassment," "discrimination," and "lawsuit" are heavily loaded with legal implications, which can put HR on high alert. By using descriptive, neutral language, you can convey your concerns without triggering a defensive reaction.

Can you be fired during an EEOC investigation?

No. When you file a job discrimination complaint with the EEOC or otherwise participate in an EEOC investigation or lawsuit, you are protected against retaliation regardless of the validity or reasonableness of the original allegation of discrimination.

What is a reasonable settlement offer?

The settlement amounts should reflect the damages suffered by the plaintiff, including medical expenses, lost wages, pain and suffering, future medical care, and other related costs. The key to fair financial compensation is to determine whether the offer is reasonable and aligns with the extent of the damages.

How much settlement should I get?

The rough 'rule of thumb' that we generally use to determine the value of the average settlement agreement payout (in respect of compensation for termination of employment) is two to three months' gross salary (in addition to your notice pay, holiday pay etc., as outlined above).

How much can I sue my employer for emotional distress?

The second type of emotional distress claim is one that is worth more than $50,000 up to hundreds of thousands of dollars, depending on the factual circumstances. You would need one or more medical opinions to support this claim and be prepared to have those medical advisors testify in court.